News from from China National Travel Service (HK) Group is that the group will be one of the major enterprises that are authorized to take over hotels from central enterprises that do not have hotels as one of their primary businesses.
In January 2010, the State-owned Assets Supervision and Administration Commission of China issued a notice that, starting from 2010, hotels that are not part of the primary businesses from central state-owned enterprises must be divested to other organizations. However to date the commission has not published any detailed plans or taken further steps,
However according to Zhang Xuewu, the president of CTS HK Group, SASAC has already defined the conditions for central enterprises that are capable of taking over these hotels. These include four key criteria: majoring in tourism; having their own tourist hotel brand, having a professional hotel management team; and having a development strategy for their hotel segment. Zhang stated that CTS HK Group will be one of the leading qualified central enterprises out of the total 129.
CTS HK Group is engaged in tourism and is also involved in iron and steel, real estate, and logistics. In June 2007, CTS Group merged into CTS HK Group after approval by the State Council.
Estimates suggest that the group might take over 20 or 30 hotels by the end of 2010.
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